13th Oct 2020 09:21
(Alliance News) - Sabre Insurance Group PLC on Tuesday said it performed well throughout the pandemic, expecting a full-year outcome in line with expectations.
The motor insurer said its performance for the nine months to September 30 has been consistent with expectations.
Gross written premiums in these nine months were 9% lower year-on-year at GBP139.2 million, down from GBP152.9 million.
Sabre said it has continued to perform well throughout the Covid-19 pandemic and disruption.
The company said that following large fluctuations throughout lockdown, and just after, volume levels appear to have stabilised.
"This is despite Sabre choosing to implement significant rate increases to ensure claims and cost inflation - currently around 10% - are fully covered," Sabre said.
The insurer said it still expects to achieve a combined ratio close to its long-term target in the mid-70% range in 2020. Sabre recorded a combined operating ratio of 73.4% in 2019, up from 70.6% in 2018.
A ratio below 100% indicates that the company is making an underwriting profit, while a ratio above 100% means that it is paying out more money in insurance claims that it is receiving from premiums. Therefore, the lower the combined ratio, the better.
Sabre said: "As lockdown eased through the summer, traffic and claims began to return to normal levels. There is some evidence of Covid-19 related inflationary pressures coming through in third party claims costs. We anticipate that the rate increases already implemented, and planned for the rest of this year, are sufficient to cover these additional costs."
Gross written premium for the year is anticipated to be around 10% lower year-on-year, depending on market conditions. This is in line with expectations.
Sabre said: "Despite the continuing uncertainties we remain confident in delivering a combined operating ratio close to our mid-70%'s target. We anticipate paying an attractive dividend for the full-year, underpinned by our current solvency ratio of 186% which is well above our target 140% to 160% range."
Sabre shares were down 0.8% at 250.99 pence each in London on Tuesday morning.
By Greg Roxburgh; [email protected]
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